U.S. companies added fewer jobs than forecast in October, suggesting demand for workers is starting to wane.
Private payrolls increased 113,000 last month after posting the weakest advance in two years in September, according to figures published Wednesday by the ADP Research Institute in collaboration with Stanford Digital Economy Lab. The median estimate in a Bloomberg survey of economists called for a reading of 150,000.
Job gains were
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Companies in the professional and business services sector cut payrolls, while all regions except the Midwest added jobs.
The report, especially when taken with the prior month's print, suggests the
The ADP data showed further cooling in wage growth. Workers who stayed in their job saw a 5.7% median pay increase in October from a year ago, according to Wednesday's report. For
"No single industry dominated hiring this month, and big post-pandemic pay increases seem to be behind us," said Nela Richardson, chief economist at ADP. "In all, October's numbers paint a well-rounded jobs picture. And while the labor market has slowed, it's still enough to support strong consumer spending."
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Federal Reserve officials pay close attention to wages as they tend to move in tandem with inflation. Though central bankers are largely expected to hold interest rates steady later Wednesday, a sustained re-acceleration in inflationary pressures risks tilting them toward further rate hikes in the coming months.
Separate data out this week will offer further clues into the direction the
ADP's report is based on payroll data covering more than 25 million U.S. employees.